From the base price level of 100 in 1979, Saudi Arabian and U.S. pike levels in 2008 stood at 200 and 410, respectively. if the 1979 S/riyal exchange rate was $026 friyal, what should the exchange rate be in 2008? Suggestion: Using purchasing power parity, adjust the exchange rate to compensate for inflation. That is, determine the relative rate of inflation between the United States and Saudi Arabia and multloly this times S/riyal of 0.26.

Answer rating: 100% (QA)

Exchange rate indicates the value of one countrys currency in terms of another currency To calcul... View the full answer